The world’s second largest cryptocurrency, Ethereum has performed exceptionally well since December 2022. Also the bulls are holding up well with the lead altcoin from the time when Ethereum has surpassed the 50 and 100-day moving average. Ethereum had even stepped into short-term consolidation moving towards $1.6K level before making a pull back.
At the time of writing, Ethereum is changing hands at $1,576 after a surge of 1.13% over the last 24hrs.
Meanwhile, Ethereum’s Shanghai upgrade is one of the most awaited upgrades in the crypto space. Before the announcement of this upgrade, On Sept 15, 2022, the network had a merge where it switched from proof-of-work to proof-of-stake. During this time, there was a condition that a minimum of 32 ETH had to be staked and cannot be withdrawn until the next upgrade.
Ethereum Shanghai To Allow Withdrawal Of Staked ETH
Now, with the Shanghai hard fork which is scheduled for March 2023, those staked Ethereums can be withdrawn. However, as per the reports, the upgrade is expected to push investors towards dumping those withdrawn ETH. If that happens, there will be a huge sell off witnessed.
On the contrary, it all depends on the number of validators moving out at a particular time. Also if a validator decides to move out, he must undergo two stages such as exit que and the withdrawal period. Hence, there are very less chances that Ethereum price will face a dump.
Moreover, the exact situation can be known only once the hard fork is launched and withdrawal is live. This suggests that investors and traders will have to wait until the time arrives and move ahead very cautiously